![]() GB - Country code (Great Britain, in this case)ġ2345678 - Individual’s domestic account number. ![]() Here’s a hypothetical example of what an IBAN would look like: Overall, the total length of the IBAN will also signify which country the IBAN belongs to. Usually, the BBAN will consist of a bank identifier, the sort code or routing number (used to identify the specific bank and branch where an account is held), and the individual’s domestic account number.Įvery country uses different algorithms to verify the BBAN when you initiate a transaction. These characters are called the basic bank account number (BBAN) and its length depends on the country. The check digits are then followed by a series of alphanumeric characters which can be up to 35 characters. This is followed by 2 digits referred to as the check digits, used to provide a primary integrity check for the IBAN standard. The first two letters represent the country code. It simply ensures that the transaction is routed correctly and that the transaction details are correct. It is, however, worth noting that an IBAN does not replace the individual’s account number. ![]() It is one of the generally accepted numbering systems used for identifying bank accounts during international transfers.Īn IBAN is a two-digit country code, then two numbers, followed by alphanumeric characters that help the bank process customer transactions faster. There are chances that you have come across this several times already, but what does it mean? IBAN stands for International Bank Account Number. The introduction of IBAN and SWIFT codes solved that problem and made international money transfer easier. In the absence of a globally accepted method, money sent between countries often ended up in the wrong location and took extra time and money to be discovered and corrected. These errors are because international transfers require that the right bank, location and account number be employed to process the transaction. But first, why is this important, and how do people use IBAN or SWIFT codes?īefore IBAN and SWIFT codes were standardised, international money transfers through banks were prone to errors and often took time to be completed. In this post, we will explain each concept and how they differ. ![]() Two popular terms that confuse most people are IBAN and SWIFT code. Even those who occasionally make international transactions for business purposes or send money to friends and family are often confused by some terms. The first time carrying out these international transfers can be daunting. International bank transactions are different from local transactions in several ways. ![]()
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